I think even if you have a large emergency fund it could still be worth it but it depends on how upside down you may become in the vehicle. If you bought it well and put a good amount down you may only ever be upside down a coupe of grand then the $600 bet perhaps isn’t worth it. But I’d you put nothing down on a Maserati Quattroporte or any other vehicle that doesn’t hold its value worth a damn you can easily find yourself eating up all your savings just to pay off the gap. In the Maserati example those things lose about $80,000 in value within five years. Perhaps then the $600 is worth it. There’s also a matter of how much each person tolerates the risk. It’s not simply a matter of can you afford it but do you want to pay it. For me I’m happy to pay $600 and keep my emergency fund for emergencies rather than things can insure against.